Upstream companies balancing gas and oil portfolios equally

✍ Scribed by Marko, William A.

• Publisher: John Wiley and Sons
• Year: 2007
• Weight: 1003 KB
• Volume: 17
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410170102

✦ Synopsis

A dation in the upstream oil and gas business in an article entitled "Outlook for Gas Leads to Gas-Heavy Mergers Upstream." The article discussed why consolidations were occurring in the business and how the mega-mergers resulted in companies with balanced oil and gas portfolios. All the megamajors had worldwide portfolios with 40-50 percent gas reserves. Predecessor companies Exxon, Amoco, Total, and YPF-all of which had higher percentages of gas-merged with or were acquired by companies such as Mobil, BP, Fina, and Repsol-all of which had higher percentages of oil reserves. This resulted in the creation of huge companies with relatively balanced portfolios.

. . . resulted in the creation of huge companies with relatively balanced portfolios.

Now that it is one year later, let us reexamine this trend, first by discussing current company shareholder return, its impact on consolidation in the industry, and what reserve portfolios look like now.